Not long now and we should see the reported EBITDA position from RIM for half year, thus bringing the total profit distribution for the financial year end. I recall NMT posted A$7.35M (NMT share) for the 1st half in FY18 but I've not seen it in their cash flow reports (not that I've really gone looking for it).
I keep harping on about the financials, because it is important - it will be / should be the first of many years to come where there is profit, and profit leads to EPS, and (hopefully) as new projects come on board it leads to EPS growth. All of these are strong foundations and will attract a wider range of investors, like the larger institutional types...
Then as time progresses, projects are executed NMT's ROE should shift from the historical negatives to a more palatable positive growth story. All of these will lead to a growth in the market cap, which results in capital growth for us shareholders.
Get the foundations right... then grow for the future. Now here is the kicker I guess... Ordinarily these things can take a long time to develop and grow, but the reality is NMT have had a few of these projects simmering away for quite some time, with many moving into pilot or close to investment decisions. So perhaps we are not too far from seeing the larger opportunities come to fruition.
And remember none of the major projects as yet have not been determined viable so its really only time we need. So many of these projects have timescales, and it looks like Q1/2 FY20 is stacking up to be the time for confirmation of these. Potentially Q4 this financial year for good news, which has a commercial component (like partner, JV, off-take, etc).
Anyway it's all a fairly positive outlook... NMT are in a good position, I guess the market will only apply the value when they execute and see results - or some sort of significant commercial development (like a partnership, JV).
- If they can secure the DSO interest for the Ti/V or secure a downstream partner for the commercialization / development of the Lithium refinery (especially a downstream battery manufacturer or EV manufacturer) consumer then we are on our way,
Plus there are a lot of things at play with NMT, lots of different (and varied) projects - I for one am interested how this will play in the long term especially regarding the past share / company split scenarios. I suspect if they consider this it would only occur when a few of these projects are commercialised..?
I will be interested to see what Gangfeng come up with... My standing assumption is they will look elsewhere for their IPO - at least to provide diversity in their supply. They already hold a fair chunk of Mt Marion so good business sense would direct you to diversify (to derisk) however they may choose to do a bit of both - take a larger stake in Mt Marion and pursue other acquisitions also.
Out of curiosity @Loop - were are you seeing the top side value in the $4 range, is that based on NMT standing up all key projects (Barrambie, recycling, licensing, Li refinement, etc)?
NMT Price at posting:
29.0¢ Sentiment: Hold Disclosure: Held
